Cheaper coking coal offers amidst weak demand conditions has posed as a major challenge to met coke futures.
Timid buying response from Indian importers and aggressive offers have plunged down imported Met coke prices in couple of weeks. Interestingly, met coke prices are stable this week owing to sluggish demand.
Currently, 64% CSR Met coke offers from China are hovering in the range of USD 132-133/MT, CFR India, alike the preceding week and 62% CSR Met coke at USD 129-130/MT.
A market participant told SteelMint, ”Declining coking coal prices will affect Met coke prices badly and met coke futures will fall steeply in approaching weeks.”
On the contrary, an Indian importer stated, “The material is available at USD 139-140/MT,CIF Haldia Port for handy size vessel for December booking.”
Domestic Met coke prices (25-80 mm) are currently assessed at INR 12,500-13,000/MT, ex-plant; witnessing no change this week.
NINL, one of the prime producer of indigenous Met coke, has lowered its offers by INR 200/MT M-o-M. Currently, the company is offering LAM coke at INR 12,500/MT, ex-NINL (advance payment; exclusive of duties and taxes) with validity till 30 Nov’15.
However, all major players have kept their offers stable but it is heard that some of them may lower their prices depending upon the type of buying order.
According to latest assessment of SteelMint, India had already imported about 0.2 MnT in Nov’15.
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